Kerala GST officials get charge memos over ₹22 crore Messi deal tax lapse
Synopsis
Key Takeaways
The Kerala GST Department has issued charge memos to three officials over alleged lapses in handling a ₹22 crore tax evasion case linked to the controversial 2025 Reporter Broadcasting Company-Argentina football team deal, commonly referred to as the Messi deal. The memos were issued by the GST Commissioner, with one of those facing departmental action being an Intelligence Officer attached to the Kanhangad office.
What the Charge Memos Cover
The departmental enquiry is examining alleged failures by the three officials to take effective steps to recover the tax after the evasion was detected. Specifically, the proceedings will determine whether the lapses were deliberate and why recovery action was not initiated despite the tax irregularity having come to light. The charge memos mark a formal escalation in what has so far been an internal probe.
The ₹22 Crore Tax Evasion Case
The Kerala GST Department had previously found tax irregularities in the financial transactions undertaken by Reporter Broadcasting Company in connection with its agreement to bring the Argentina national football team to Kerala. The department's assessment concluded that tax due on the amount transferred by the sponsor had not been collected, placing the total liability at approximately ₹22 crore — making it one of the more significant tax-evasion cases to come under the department's scrutiny in recent years.
Political Dimension: Detection Under Pinarayi Government
Notably, the alleged tax evasion was detected during the tenure of the Pinarayi Vijayan government. According to the findings now under examination, stringent action was not taken at the time to ensure recovery of the tax amount despite the detection. This has added a political dimension to what is otherwise a departmental accountability matter, drawing scrutiny to the decision-making — or absence of it — during that period.
What Happens Next
The departmental proceedings against the three officials are expected to establish the precise reasons for the alleged delay in recovery proceedings. The enquiry will determine whether there was a systemic failure or individual dereliction of duty. The outcome of the charge memo process will shape whether further action — including penalties or suspension — follows for the officials involved. The broader question of recovering the ₹22 crore from Reporter Broadcasting Company remains unresolved.